New Fortress Energy: EPS Estimates Tempered, But Share Price Momentum Unfazed

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New Fortress Energy ($NASDAQ:NFE) (NFE) is an energy and infrastructure company focused on transforming the global energy landscape. Recently, however, EPS estimates for NFE have been tempered, resulting in some investors being concerned that the stock may not reach its previously predicted highs. Despite this, the share price of New Fortress Energy has remained unfazed. In fact, the stock has grown quickly since the beginning of 2021 and continues to be a popular pick for investors. Much of this is due to the company’s ability to diversify its business operations, which include investing in renewable energy infrastructure projects and expanding into new regions.

Additionally, NFE has also been able to build positive relationships with governments and local communities. This has allowed it to secure key partnerships and investments which have led to further share price growth. This suggests that the company’s potential remains high and investors are still confident in its ability to deliver on its long-term goals. As such, it appears that NFE’s share price momentum will remain strong in the near future.

Earnings

In its earning report of FY2023 Q3 as of September 30 2021, NEW FORTRESS ENERGY reported total revenue of 304.66 million USD and net income loss of 9.81 million USD. In comparison to the same quarter of the previous year, this represents a 58.4% decrease in total revenue and 115.9% decrease in net income. Despite this decrease, NEW FORTRESS ENERGY’s total revenue increased significantly from the 304.66 million USD reported in 2021 to 514.46 million USD in the last three years.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for NFE. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for NFE. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for NFE. More…

Key Ratios Snapshot

Some of the financial key ratios for NFE are shown below. More…

Market Price

Monday marked yet another volatile session for shares of New Fortress Energy (NFE). Despite several analysts lowering their estimates for the company’s earnings per share (EPS) for both 2021 and 2022, NFE stock opened at $39.3 and closed at $39.2, only down by 1.2% from its previous closing price of 39.7. This lack of a significant pullback despite the tempered EPS estimates suggests that the market continues to maintain its optimistic view of the company’s future prospects. This indicates that investors are confident in New Fortress Energy’s ability to rebound in the coming year, as it looks to capitalize on its strong strategic positioning in natural gas infrastructure and power generation.

Overall, while Monday’s session saw some weak points in terms of the EPS estimates for New Fortress Energy, the market’s reaction suggests that investors remain confident in the company’s long-term prospects. With the share price momentum still intact, NFE could be well-positioned for further growth in the months to come. Live Quote…

Analysis

GoodWhale has analyzed the fundamentals of NEW FORTRESS ENERGY and based on our Star Chart, classified the company as a ‘cheetah’. This means that the company has achieved high revenue or earnings growth but is considered less stable due to lower profitability. As this type of company is often attractive to growth-oriented investors, we believe that investors looking for above-average returns may be particularly interested in NEW FORTRESS ENERGY. Specifically, it is strong in growth but weak in asset quality, profitability and dividend. Additionally, our health score for NEW FORTRESS ENERGY is 2/10 considering its cashflows and debt, implying that it is less likely to pay off debt and fund future operations, and may not be a sustainable investment for some investors. More…

Peers

Its competitors are Osaka Gas Co Ltd, Atmos Energy Corp, and Bestsun Energy Co Ltd.

– Osaka Gas Co Ltd ($TSE:9532)

Osaka Gas Co Ltd is a Japanese company that provides natural gas and related services. The company has a market cap of 904.03B as of 2022 and a Return on Equity of 4.85%. The company is involved in the exploration, production, and distribution of natural gas. It also owns and operates a gas pipeline network. The company serves residential, commercial, and industrial customers in Japan.

– Atmos Energy Corp ($NYSE:ATO)

Atmos Energy Corporation is a publicly traded natural gas company headquartered in Dallas, Texas, and is the largest natural-gas-only distributor in the United States, serving over three million customers in eight states. The company supplies gas to residential, commercial and industrial customers through its utilities. Atmos Energy’s primary business is the regulated natural gas distribution business, which it conducts through its subsidiaries in eight states.

– Bestsun Energy Co Ltd ($SHSE:600681)

Bestsun Energy Co Ltd is a solar energy company with a market cap of 5.94B as of 2022. The company has a Return on Equity of 11.71%. The company specializes in the design, manufacture, and sale of solar photovoltaic products.

Summary

New Fortress Energy (NFE) has seen its earnings per share (EPS) estimates tempered recently due to market volatility, however, the stock has managed to maintain its share price momentum. This is supported by the company’s strategic investments in clean energy and liquefied natural gas infrastructure, as well as its ability to provide cost-effective energy solutions to companies and countries.